Malaysia facing severe labour shortage after foreign worker ban

The Malaysian industry suffers from a severe shortage of manpower two months after the government decided to suspend the recruitment of new foreign workers. Factory owners, farmers and service providers complain that they are short of workers and their business development has been hampered.

The Federation of Malaysian Manufacturers claims that almost half of its members can no longer fulfill orders. A survey conducted by the federation showed that up to 84 per cent of factories are facing manpower shortages and potential loss of revenue.

In Malaysia’s furniture industry alone, reputed to be one of the largest in the world, a shortage of 27,000 workers has seen monthly shipments decline by more than 28 per cent. A lack of farm labourers, who used to be mainly from Bangladesh, has also been blamed for the price of local fruit soaring by as much as 60 per cent. The auto service industry, staffed mainly by Nepalese, is also suffering.

Roland Mueller, the president of the Free Industrial Zone Penang Companies’ Association which groups 70 domestic companies and multinationals from the US and Europe operating in semiconductors and electronics, said some members may cut investments in Malaysia and shift to other countries in the region, according to local media reports.

Malaysian industrialists have requested the government to correct its decision as the shortage could affect the country’s productivity and slow down economic growth. According to reports, a shortage of workers has put more than $5 billion in investments at stake.

The Malaysian industry suffers from a severe shortage of manpower two months after the government decided to suspend the recruitment of new foreign workers. Factory owners, farmers and service providers complain that they are short of workers and their business development has been hampered.

The Federation of Malaysian Manufacturers claims that almost half of its members can no longer fulfill orders. A survey conducted by the federation showed that up to 84 per cent of factories are facing manpower shortages and potential loss of revenue.

In Malaysia’s furniture industry alone, reputed to be one of the largest in the world, a shortage of 27,000 workers has seen monthly shipments decline by more than 28 per cent. A lack of farm labourers, who used to be mainly from Bangladesh, has also been blamed for the price of local fruit soaring by as much as 60 per cent. The auto service industry, staffed mainly by Nepalese, is also suffering.

Roland Mueller, the president of the Free Industrial Zone Penang Companies’ Association which groups 70 domestic companies and multinationals from the US and Europe operating in semiconductors and electronics, said some members may cut investments in Malaysia and shift to other countries in the region, according to local media reports.

Malaysian industrialists have requested the government to correct its decision as the shortage could affect the country’s productivity and slow down economic growth. According to reports, a shortage of workers has put more than $5 billion in investments at stake.